Responding to Supply Chain Disruptions in the Wire Form Manufacturing Industry
With trucking and logistics loosening up manufacturing companies seem to have managed through the worst of the supply chain issues. The issues led many companies to rethink sourcing strategies to address risk. With this in mind we’d like to share a few tips for our customers so that we can continue to help them produce their quality products and meet their customer demands.
Use a domestic suppliers for supplies and manufacturing partners
- Considering domestic suppliers and manufacturing partners is a relatively simple way to avert supply chain problems while building a locally sourced image. When importing, businesses run a greater risk of encountering quality issues and delayed shipments. When sourcing domestically, businesses have the luxury of being able to travel to a supplier’s manufacturing facility to manage the relationship and inspect product. With reduced travel distance, reduces the risk of delayed shipments due to weather or geopolitical disagreements.
- Businesses stand to gain from considering domestic over international suppliers, ranging from more streamlined procurement and cost benefits to boosting credibility among customers and prospective customers.
WireTech Fabricators has stepped up to the challenge of sourcing materials locally which has led to job growth in the Midwest and improvements in order completion times.
Consolidate materials and component suppliers
- It’s safe to say everyone could use a bit of streamlining right now. One of the best ways to do that within the supply chain is through vendor consolidation — what’s also referred to as vendor reduction.
- Right out of the gate, one of the more obvious benefits is a much-deserved cost saving. Consolidating means increasing the average spend with each supplier, which should create opportunities for reduced prices. Also, with fewer vendors your team uses fewer resources and also invests less time.
- For the biggest impact, you’ll need to find a partner or vendor you can trust who also delivers quality work. Choosing the wrong vendor can be just as impactful to your bottom line, albeit negatively. It’s also worth mentioning that bringing on too many vendors, or ignoring consolidation to work with many partners, will create cost redundancies.
Provide sales forecast
- Suppliers developing sales and operations plans without direct forecast information from key customers are missing an opportunity to have greater control over their business and provide better service for their customers.
- Customer forecasts are essential for developing accurate sales and operations plans. Procurement professionals who do not share forecasts with key suppliers are creating a layer of risk in the supply chain that could result in supply interruptions and higher prices.
Onboard secondary suppliers
- Look at what other suppliers can provide in the event your current supplier can’t meet your needs. This will probably mean identifying suppliers in other geographic locations and building a relationship with them so that they can step in when you need them.